Reed and Gander, there goes the neihbor hood

From Reeds:

To Our Friends and Family of Reeds,
We have just completed a very exciting deal that we wanted you to hear about directly from us . . . Gander Mountain is purchasing the Reeds Baxter Store! We are excited about this unexpected sale because it expands our future opportunities and positions Reeds in coming years to explore additional retail locations and further develop its growing internet and catalog business at ReedsSports.com. Accompanying this letter, you will receive a press release announcing the news to the public. It describes the basics of the transaction, but since Gander Mountain is a publicly-traded company, its notices cannot be very detailed. We are writing this letter to share with you our excitement and additional details.
We were surprised when top Gander Mountain officials made a serious offer to purchase the Reeds Baxter store. It was never the intention of Reeds to build, develop and sell the Baxter Reeds store. Since its opening in 2004, Reeds Baxter store showed continuous sales growth year after year. Reeds Baxter store gained much success with great service and customer care. We are proud of our sales performance and what the Reeds Family of employees established as a strong, loyal following of friends and customers.
We are proud of the support that we provided to countless community organizations, fundraisers, conservation groups and non-profit organizations. Moreover, we believe that it is a landmark accomplishment to create a business from scratch in a new community that in just three years is regarded highly enough by a publicly-traded national competitor that they wanted to purchase it. The sale is also rewarding to us because of the uncertainty and skepticism from those that questioned Reeds initiative to create the Baxter Reeds store, especially in a location where there was just a heavily-forested undeveloped section of Baxter, which now bustles with business, growth and development.
The Brainerd Lakes area and surrounding communities have been very good to Reeds and our Baxter store has been very successful. So, obviously, much soul-searching, prayer, thought and good business sense went into the decision to sell the Baxter business segment of Reeds. The Brainerd Lakes area community is our home and we do not intend on leaving the Brainerd area. We will continue to reside in the Brainerd area, but just work out of the Reeds in Walker until new locations are established in the coming years. Reeds will continue to serve all our friends and customers at our hometown Walker store and through our nation-wide shipping business at http://www.ReedsSports.com.
From a business perspective, the purchase offers great opportunities and puts the Reeds company in a position where it has additional resources to focus on further growth of its internet business (ReedsSports.com), its catalog sales and more retail stores in coming years as opportunities develop. For example, we now plan to commence with our Walker store expansion and remodeling plans. We have wanted to remodel the Reeds’ Walker Store for some time and now we have a great chance to do so. We will begin working on plans for a huge remodeling and expansion project that will be completed in the Spring of 2008 to make the legendary Walker Reeds Store even more of a destination.
Reeds’ Baxter Store will continue with its typical merchandising and marketing in place until it closes on Labor Day. We will hold our annual Fall Classic Sale on August 18-26, which will feature factory semi-trailer truckload sales and amazing deals storewide. As a grand finale, Reeds will host what will be billed as the Greatest Customer Appreciation Sale ever over its last three days of operation in Baxter on Labor Day Weekend, August 31-September 2. Reeds Baxter store will close permanently at 5 p.m. on Sunday, September 2, on Labor Day weekend.
We are very grateful for you and all of our customers, staff, friends, business peers, and to the communities in the Brainerd Lakes area. We look forward to continuing to see you and our other friends in our Walker store and on-line at ReedsSports.com. We hope you have time in the coming months to stop in and visit us in the Baxter store before September. Thank you.
Our very best regards,

The Reeds Family

Gander Mountain and Reeds Reach Agreement

St Paul MN — July 13, 2007,…Gander Mountain Company, the nation’s largest retail network of stores for hunting, fishing, camping, boats, marine, and outdoor lifestyle products and services, along with Reeds Family Outdoor Outfitters, a well known regional outdoor retailer based in Walker, Minnesota, announced today that Gander Mountain will acquire the inventory and certain assets of the Reeds Outdoor Super Store located in Baxter Minnesota. The closing of the transaction is expected to occur in September 2007.

As a part of the agreement, Reeds will no longer have a presence in Baxter, but will continue to operate its store in Walker, Minnesota, its on-line store, catalog businesses and other retail locations in the future.

“Gander Mountain opened our Baxter store in 2005, and while we have been pleased with the business, we believe the Brainerd Lakes area could be better served by one store with the quantity and quality of service and inventory that our store and the Reeds store are both offering,” said Mark Baker, Gander Mountain president and CEO. “It makes sense for both companies and will be good for outdoor enthusiasts. We have great respect for Reeds as good competitors and we wish the Arnold family all the best in Walker and wherever they do business in the future.”

Between now and September, Reeds and Gander Mountain will continue customary daily operations in their respective Baxter locations. Gander Mountain and Reeds will integrate the Reeds Baxter store inventory into Gander Mountain’s Baxter store. It is expected that some current Reeds Baxter staff will be employed by Gander Mountain as a part of the transition. Reeds will move some staff members to its Walker store.

“Everyone connected with Reeds is very grateful to all of our customers, staff, friends, businesses, and to the communities in the Brainerd Lakes area,” said Adam Arnold, Reeds president. “Reeds Baxter store performed very well over the years with continuous sales growth year after year and it gained great success by establishing a strong, loyal following of friends and customers with great service and customer care. We look forward to continuing to serve customers and friends in our Walker store and on-line.”

About Gander Mountain Company
Gander Mountain Company (Nasdaq: GMTN), headquartered in Saint Paul, Minnesota, is the nation’s largest retail network of stores for hunting, fishing, camping, boating, marine and outdoor lifestyle products and services. Since 1960, the Gander Mountain brand has offered an expanding assortment of competitively priced outdoor equipment, technical apparel and footwear, as well as gunsmith, archery, ATV and marine services. The stores feature national, regional and local brands as well as the company’s owned brands. Focused on a “We Live Outdoors®” culture, Gander Mountain dedicates itself to creating outdoor memories. There are 12 Gander Mountain outdoor lifestyle stores in Minnesota and a total of 108 conveniently located Gander Mountain stores in 22 states. For the nearest store location call 800-282-5993 or visit http://www.GanderMountain.com .

Cautionary Note Regarding Forward-Looking Statements
Any statements in this release that are not historical or current facts are forward-looking statements. All forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risks and Factors Affecting Current and Future Results” section of the company’s Annual Report on Form 10-K for fiscal 2006 and other required reports, as filed with the SEC, which are available at http://www.GanderMountain.com and at the SEC’s website at Boilerplate and Safe Harbor Language.

At least when Gander takes over they want need any stock boys to fill the shelves

Neat! It’s a weird move….

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Neat! It’s a weird move….

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They want the internet sales. Cabellas won’t allow them to do it under the Gander name. Purchasing Reeds is how there accomplishing it. (I assume.)

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Neat! It’s a weird move….

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They want the internet sales. Cabellas won’t allow them to do it under the Gander name. Purchasing Reeds is how there accomplishing it. (I assume.)

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I am assuming there will be a larger announcment later this year. We’ll see. (Again…. Just an assumption.)

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They want the internet sales. Cabellas won’t allow them to do it under the Gander name. Purchasing Reeds is how there accomplishing it.

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I understand that Gander Mountain does not have any internet sales, but I don’t understand why they can’t. How does Cabelas not allow them to do this?

Second, the article said that Reeds will be closed and the inventory will be moved to the Baxter Gander Mountain. It doesn’t sound like the name Reeds will be in Baxter at all. I would assume that Gander Mountain is just trying to cut out their competition in that area. Probably good for Gander and good for Reeds, assuming they’ll get a good chunk of $$$ to remodel the Walker store and possibly expand to other parts of the state.

OK, so Jeff Arnold retires now right?

Cabelas bought the internet sales rights from Gander a number of years ago. Part of the agreement was that Gander wouldn’t sell online.

Other than being family owned, I never understood the great attraction to Reed’s vrs one of the chain stores. I know guys that would have to stop in at Reed’s every time through Baxter at which point I was thinking “ummm don’t you work a block away from Gander and drive past Scheels and Sportsmans every day??”

It must have been a DARN nice offer for them to make such a move…RR

Actually Gander just won the right to do Internet sales again. The original “non compete” clause with Cabela’s was for 7 years. There have been long-standing legal maneuvers about all of this.

Copy of AP Article

Jul 11, 2007 12:12 pm US/Central

Gander Mountain Wins Trademark Case Over Cabela’s
(AP) Lincoln, Neb. Cabela’s Inc. may soon face a new catalog and online competitor because rival outdoor outfitter Gander Mountain Co. won the right to use its own trademarks again in direct marketing.

A federal judge in Minnesota ruled in Gander Mountain’s favor Tuesday in the latest round of the logo and trademark dispute between the two companies. So Gander Mountain announced plans to launch an online store and resurrect its catalog as soon as is practical.

“We are now going to accelerate our pace toward becoming the leading multichannel outdoor retailer in the nation,” said Mark Baker, Gander Mountain president and CEO.

Gander Mountain spokesman Tim Martin said Wednesday he wasn’t sure how quickly the company, which is based in St. Paul, Minn., would launch its new retail outlets.

Cabela’s officials in Sidney, Neb., said Wednesday that they had not decided whether to appeal.

Cabela’s said in a statement that the company believes the judge’s ruling contradicts a 1996 agreement between the two companies.

Gander Mountain shares gained $1.27, or 12.6 percent, to trade at $11.36 Wednesday afternoon. The stock has ranged from $5.05 to $16 in the past year.

Cabela’s shares lost 16 cents, or less than 1 percent, to $21.50 Wednesday afternoon. The Nebraska retailer’s stock has ranged from $19.06 to $26.49 in the past year.

Gander Mountain hasn’t been able to use its brand to market its hunting, fishing and camping products directly to consumers outside of its stores since 1996. That’s when Gander’s predecessor company sold a short-term trademark license and its direct-marketing division to Cabela’s for $35 million.

Also included in the sale was a seven-year noncompete clause that led to litigation between the two firms, but has since expired.

Then Gander Mountain filed for bankruptcy in 1996, and Holiday Cos. bought its stores. The chain went public in 2004 and expanded.

Both Cabela’s and Gander Mountain have a network of retail stores across the country. Cabela’s has fewer stores, but they are generally bigger than Gander Mountain’s stores.

I don’t live near any store – Omaha is an hour away – so I’ve always really valued Reed’s and Thorne Brothers. Both have treated me extemely well over the years. Obviously I get everything I can through Bass Pro but I certainly admire and support the “little guy with service!” when I can!!!

I can also walk into any boat show they (Reeds) work, having not seen those guys in a year and they remember my name without even looking at my shirt first. THAT always impresses me.

Todd

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Neat! It’s a weird move….

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They want the internet sales. Cabellas won’t allow them to do it under the Gander name. Purchasing Reeds is how there accomplishing it. (I assume.)

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I am assuming there will be a larger announcment later this year. We’ll see. (Again…. Just an assumption.)

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I think todd’s post cleared that up.

Strange because it seems they are just going to close Reeds and continue on with the Gander store, though Reeds seemed to have a neat location, their hours sucks and the one time we tried to visit the store they were closed and gave us some attitude when we walked up to the doors (not knowing the were closing) That’s My only experince with Reeds. So no loss to me eitherway Gander in Baxter has a great store, Spent a lot of money up there last year, and I have nothing but the best to say for them, they treated me right

Looks like I proved the definition of assumption once again. Well… I guess it only made an ars out of me this time.

i was pretty happy to hear reeds sold out,i hated the store in baxter, only bad costumer service is what i got

I guess it’s official! If you can’t beat them; buy them!

I still cannot see myself stopping in the GM Baxter store. They are the poster child for poor customer service! I suppose it is kind of difficult to help a customer with anything when the store doesn’t keep items in stock

never had the problem at Reeds, either store

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i hated the store in baxter, only bad costumer service is what i got

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The Gander store is about as bad as gets Reeds blows them out of the Water on eeeeeverything.

I stopped by Gander the other day for line, guess whet they where out of stock

So I put back the couple other items and left

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i hated the store in baxter, only bad costumer service is what i got

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The Gander store is about as bad as gets Reeds blows them out of the Water on eeeeeverything.

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i also agree that reeds had more things, but i never had a problem finding anything in either store in baxter. i just would not go back to reeds after they didnt want to exchange a fishing reel that was broke after the first cast, they told me i was fishing to heavy for it.

C @ P……

“Reed’s confirmed yesterday that the store is NOT part of the sale. They will remain the owners of the store which they assume will eventually be sold. Gander is just buying the ‘inventory’, but has admitted it was done to reduce competition in the Brainard area.”